Qatar Petroleum (QP) has completed the distribution of the first tranche of free incentive shares to the eligible shareholders of Mesaieed Petrochemical Holding Company (MPHC), following which its holding has come down by 8.7%.
The free incentive shares distributed are equivalent to 50% of the shares allotted to shareholders at the time of the initial public offering (IPO) of MPHC in accordance with the mechanisms set forth in the IPO prospectus of the company.
This distribution is in line with the QP's moves to distribute two equal sets of free incentive shares to eligible shareholders in the first award date on December 31, 2018 and the second award on December 31, 2023.
The free incentive shares are ordinary shares that have equal rights with capital shares. This distribution will not add to or change the share capital of the company as the distribution was allocated from QP's shareholding in MPHC, which has decreased as a result by 8.7% from 74.2% to 65.5%.
In another communiqué, Qatar Central Securities Depository said MPHC incentive shares have been added to the shareholders who met the distribution conditions according to MPHC prospectus, and the shares will be available for trading as of today (January 2, 2019).
The distribution of the free shares comes as part of QP’s efforts to strengthen the foundations of investment and the long-term savings culture among Qatari citizens. In doing so, it has committed to giving every Qatari individual investor, one free share for every allotted share conditional to keeping at least 50% of the allotted shares until the date of free shares distribution.
MPHC had offered 323.19mn shares at QR10.2 per piece through an IPO in 2013. The maiden offer was oversubscribed by five times.